The evidence suggests that ethical
funds generally under-perform when
compared with the market because
they restrict their choice to a narrow,
and therefore riskier, range of investments.
Moreover, there is no indication
that the ethical screens proffered
by ethical funds identify better
managed or less risky firms.
The debate over performance is
clouded by the impossibility of defining
a core, let alone a unique, set
of ethics that could be used to identify
objectively an ethical fund. ‘Ethical’
funds do not exist as a separate
class.
Most Australian funds could
justifiably claim to be ethical. Selfdescribed
ethical funds are no more
than personal preference investment
vehicles.

I use Hunter Hall and Australian Ethical Investment, but also index funds and direct ownership in funds. I am happy with their approach. Obviously one persons idea of ethical may differ from anothers, but the funds explain their approaches in their PDS, for example I like the type of companies that Australian Ethical invest in but do not have the time to do the research to find the info they have.